A coalition of civil society organisations led by Rising Up for a United Nigeria (RUN) has asserted that the regulations evolved by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) have helped to sanitise the oil and gas sector.
Citing the reduction in crude oil theft and operational efficiency, the CSOs led by the convener of RUN, Solomon Adodo and the national coordinator, Guardians of Democracy and Development Initiative, Igwe Ude-Umanta, said the leadership of NUPRC worked “tirelessly, noiselessly and profoundly to deliver creditably on their mandate.”
According to them, the agency’s reforms, as well as its openness, clarity, ease of doing business, and predictability of business outcomes, had attracted more investors to the country.
They said, “There are several regulations that have been introduced by NUPRC. These regulations are for improvement in industry standards and operational efficiency. This has been key to stability in the oil business environment and attractive massive productive partnerships. Some of the significant milestones recorded as a result include;
“A significant reduction in crude oil theft since the Commission conducted a comprehensive audit of crude oil theft and evaluated the integrity of upstream assets to determine the actual extent of theft in the industry. Further measures were implemented to address crude oil theft by enhancing cargo declaration and upstream measurement processes.
“Additionally, enhanced regulations were put in place to combat crude oil theft, which resulted in a major boost to Nigeria’s crude oil production, from below one million barrels per day to above 1.6 million barrels per day. At present, Nigeria’s oil production and output are at an all-time high, and the environment is most conducive for business. This has led to a reversal in oil investment decline.”
The CSOs added, “The commission undertook a comprehensive industry-wide study to reactivate inactive wells in Nigeria, unlocking 700 thousand barrels of oil per day.
The NUPRC also developed a Domestic Crude Oil Supply Obligation (DCSO) template to ensure sufficient and uninterrupted feedstock to all local refineries to serve Nigeria‘s domestic petroleum needs.
“All existing crude handling agreements have undergone a comprehensive review aimed at bolstering transparency and fostering competitiveness in the process of crude evacuation. This initiative is already beginning to yield a reduction in both capital and operational expenditure.
“In the area of growth of reserves, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) issued its first Petroleum Exploration License (PEL) for a geophysical survey project aimed at acquiring approximately 56,000 square kilometres of 3D seismic and gravity data offshore in the Niger Delta. A feat which will place Nigeria in the frontlines in the comity of OPEC nations.“
For optimal efficiency, Adodo said NUPRC had advanced the mini bid licensing round for seven deep offshore Petroleum Prospecting Licenses (PPLs) to boost national reserves. This effort increased the country‘s crude oil reserves to 37.50 billion barrels of oil and 209.26 trillion cubic feet of gas, reflecting a 1.43 percent and 0.21 percent increase, respectively, compared to 2023 figures.
He said the commission, with proper foresight, also engaged exploration and production companies to unlock approximately 57 trillion cubic feet of uncommitted or unmonetised gas reserves. Furthermore, the annual Domestic Gas Delivery Obligation (DGDO) has been issued to all leasees to drive growth in gas production.
“This initiative seeks to balance export portfolios with the expanding demand in the domestic gas market, resulting in lower gas prices. The DGDO algorithm will unlock more upstream gas supply for increased domestic gas utilisation.
“As a significant transparency milestone in oil and gas revenue optimisation, the commission has effectively transitioned the management of Fiscal Oil Prices (FOP) differentials from NNPCL to NUPRC. It began publishing market-reflective Fiscal Oil Prices (FOP) differentials on NUPRC‘s website in line with the Petroleum Industry Act 2021 transparency objectives,“ he said.